Final answer:
Cloud computing is generally cheaper for most companies due to economies of scale, pay-as-you-go pricing, and no hardware maintenance.
Step-by-step explanation:
Cloud computing is generally cheaper than internal data centers for most companies due to several factors:
- Economies of scale: Cloud service providers have vast infrastructures and serve multiple clients, allowing them to spread costs over a large customer base. This results in lower costs for individual companies compared to building and maintaining their own data centers.
- Pay-as-you-go pricing: Cloud providers offer flexible pricing models where companies only pay for the resources they use. This eliminates upfront costs and allows companies to scale up or down as needed, reducing wastage and optimizing costs.
- No hardware maintenance: With cloud computing, companies don't have to invest in expensive hardware or worry about maintenance and upgrades. This further reduces costs and frees up resources for other business priorities.